Review date: June 14, 2026
The Latin America Portfolio currently holds one open position: Smartfit Escola de Ginástica e Dança S.A. The position remains appropriate for a region-focused portfolio because Smart Fit is a Brazil-listed fitness operator with a broad Latin American footprint, including Brazil, Mexico, and other regional markets. Smart Fit reported 2,113 gyms across 16 countries at the end of the first quarter of 2026, with Brazil representing 47% of units, Mexico 22%, and other countries 30%. ([api.mziq.com](https://api.mziq.com/mzfilemanager/v2/d/757d3905-6a2d-496a-bbb0-32ddd17de6a0/c816019a-8143-a71f-11ff-3dc3a6a846e0?origin=2))
Portfolio positioning
This is a concentrated portfolio at the moment. With only one active holding, the portfolio is effectively a single-stock expression of Latin American consumer services, urban middle-class health and wellness demand, and the expansion of low-cost gym formats across the region.
That concentration is not automatically a sell signal, especially because the Smart Fit position was just added on June 13, 2026. However, it does mean that weekly portfolio risk is dominated by one company, one sector, and one primary local market listing. Future additions should ideally diversify the portfolio across more Latin American countries, sectors, and earnings drivers.
Recent performance and data check
The stored portfolio quote history shows the position at a 0.00% return, with both the first and latest stored quote dated July 9, 2025. Because the pick date is June 13, 2026, that quote history appears stale or mismatched. For portfolio-review purposes, this week’s reported performance should be treated as flat but data-limited rather than a true live market return.
As an external market reference, Smart Fit’s primary São Paulo listing was quoted at R$18.93 on June 12, 2026, with a 5-day gain of 2.38% but a year-to-date decline of 18.76%. ([marketscreener.com](https://www.marketscreener.com/quote/stock/SMARTFIT-ESCOLA-DE-GIN-ST-41282971/)) This contrast is useful: the business has continued to report growth, while the stock has still faced valuation, macro, or sentiment pressure during 2026.
Fundamental drivers
The latest reported operating update was constructive. In the first quarter of 2026, Smart Fit reported net revenue of R$2.1 billion, up 25% year over year; adjusted EBITDA of R$672 million, up 29%; and recurring net income of R$207 million, up 47%. ([api.mziq.com](https://api.mziq.com/mzfilemanager/v2/d/757d3905-6a2d-496a-bbb0-32ddd17de6a0/c816019a-8143-a71f-11ff-3dc3a6a846e0?origin=2)) The company also reiterated confidence in its 2026 guidance for 330 to 350 gym openings, supported by a pipeline of units under construction and signed contracts. ([api.mziq.com](https://api.mziq.com/mzfilemanager/v2/d/757d3905-6a2d-496a-bbb0-32ddd17de6a0/c816019a-8143-a71f-11ff-3dc3a6a846e0?origin=2))
Those figures support the original portfolio logic: Smart Fit offers exposure to a scaled Latin American consumer platform with recurring memberships, growing unit density, and adjacent growth through offerings such as TotalPass. The TotalPass network also continues to expand, with the company reporting more than 34,000 partner units in Brazil and more than 9,000 in Mexico during the first quarter. ([api.mziq.com](https://api.mziq.com/mzfilemanager/v2/d/757d3905-6a2d-496a-bbb0-32ddd17de6a0/c816019a-8143-a71f-11ff-3dc3a6a846e0?origin=2))
Risk concentration
The main risk this week is not a broken thesis; it is portfolio concentration. A single-position Latin America portfolio can move sharply with one stock’s liquidity, currency translation, valuation multiple, execution headlines, or local-market risk. Smart Fit also carries execution risk because its growth plan depends on sustained unit openings, mature-club economics, real estate availability, and consumer resilience.
There is also a practical access issue to monitor. The portfolio record references SFEGY, while Smart Fit’s main local listing is SMFT3 on B3 in Brazil. The holding still fits the Latin America mandate, but the portfolio should remain attentive to the most liquid and accurate trading line for pricing and execution.
Decision: Hold Smart Fit
No position should be closed this week. Smart Fit is newly added, remains inside its protected minimum holding period, and the latest company fundamentals do not indicate a thesis break. The position should be held while the portfolio gathers a fresher quote history and while we monitor whether the company continues to convert expansion into margin and earnings growth.
What to watch next
- Quote-data refresh: confirm live pricing for the correct Smart Fit instrument and resolve the stale quote-history mismatch.
- Unit growth execution: monitor whether 2026 openings remain on pace with the 330–350 target.
- Margins: watch whether adjusted EBITDA margin remains near recent levels as new gyms ramp.
- Brazil and Mexico mix: track whether growth remains balanced across the company’s most important markets.
- Portfolio diversification: consider future additions from other Latin American sectors to reduce single-stock exposure.
Risk disclaimer: This draft is for informational and editorial purposes only and is not financial advice. Investing involves risk, including possible loss of principal, currency risk, liquidity risk, and market volatility. Investors should do their own research or consult a qualified financial adviser before making investment decisions.